WallStSmart

Choice Hotels International Inc (CHH)vsSea Ltd (SE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sea Ltd generates 2239% more annual revenue ($22.94B vs $980.59M). CHH leads profitability with a 37.7% profit margin vs 6.9%. SE appears more attractively valued with a PEG of 0.59. SE earns a higher WallStSmart Score of 70/100 (B-).

CHH

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 9.5Value: 4.7Quality: 4.5
Piotroski: 5/9Altman Z: 2.29

SE

Strong Buy

70

out of 100

Grade: B-

Growth: 10.0Profit: 6.0Value: 7.3Quality: 5.5
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHHSignificantly Overvalued (-67.9%)

Margin of Safety

-67.9%

Fair Value

$64.94

Current Price

$117.36

$52.42 premium

UndervaluedFair: $64.94Overvalued
SEUndervalued (+53.2%)

Margin of Safety

+53.2%

Fair Value

$244.86

Current Price

$84.88

$159.98 discount

UndervaluedFair: $244.86Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHH4 strengths · Avg: 9.5/10
Return on EquityProfitability
54.4%10/10

Every $100 of equity generates 54 in profit

Profit MarginProfitability
37.7%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
45.0%10/10

Strong operational efficiency at 45.0%

P/E RatioValuation
14.9x8/10

Attractively priced relative to earnings

SE4 strengths · Avg: 9.3/10
Revenue GrowthGrowth
38.4%10/10

Revenue surging 38.4% year-over-year

EPS GrowthGrowth
58.2%10/10

Earnings expanding 58.2% YoY

Market CapQuality
$51.99B9/10

Large-cap with strong market position

PEG RatioValuation
0.598/10

Growing faster than its price suggests

Areas to Watch

CHH4 concerns · Avg: 3.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Price/BookValuation
29.6x2/10

Trading at 29.6x book value

EPS GrowthGrowth
-13.6%2/10

Earnings declined 13.6%

SE3 concerns · Avg: 3.0/10
P/E RatioValuation
33.7x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Free Cash FlowQuality
$02/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CHH

The strongest argument for CHH centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 37.7% and operating margin at 45.0%.

Bull Case : SE

The strongest argument for SE centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 38.4% demonstrates continued momentum. PEG of 0.59 suggests the stock is reasonably priced for its growth.

Bear Case : CHH

The primary concerns for CHH are PEG Ratio, Revenue Growth, Price/Book. Debt-to-equity of 11.11 is elevated, increasing financial risk.

Bear Case : SE

The primary concerns for SE are P/E Ratio, Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

CHH profiles as a value stock while SE is a hypergrowth play — different risk/reward profiles.

SE carries more volatility with a beta of 1.70 — expect wider price swings.

SE is growing revenue faster at 38.4% — sustainability is the question.

Monitor LODGING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SE scores higher overall (70/100 vs 56/100) and 38.4% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Choice Hotels International Inc

CONSUMER CYCLICAL · LODGING · USA

Choice Hotels International, Inc. is a global hotel franchisor. The company is headquartered in Rockville, Maryland.

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Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

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